South-east Asia curbs energy use as Middle East war disrupts oil supplies
Mar 18th 2026
Governments from Thailand to the Philippines and Vietnam are rolling out energy conservation rules, emergency tax powers, biofuel measures and cash aid as oil supply disruptions from the Middle East push prices up and hit transport workers.
- The International Energy Agency says the conflict has caused the largest supply disruption in the history of the global oil market.
- Many south-east Asian countries rely heavily on imports through the Strait of Hormuz, with the Philippines sourcing about 90% of its oil from the Gulf.
- Thailand has ordered public offices to set air conditioning at 26-27C, suspended most overseas travel for officials, raised biofuel blends and halted most oil exports.
- The Philippines granted emergency powers to cut excise taxes on oil, introduced cash handouts for public transport drivers and shifted some government staff to a four-day week.
- Vietnam has urged employers to allow work from home and sought additional crude supplies from Japan and South Korea.
- Indonesia is accelerating a programme to blend 50% palm-oil biodiesel with conventional diesel.
- Diesel subsidies are costing governments heavily and are unlikely to be sustainable beyond one to two months, analysts warn.
- Fuel price spikes have halved incomes for some public transport drivers and caused panic buying, rationing and supply shortages at petrol stations.